If you have super with a default fund (i.e. the one your employer offered) you will have some form of life insurance, unless you have opted out. If you have researched and selected a superannuation fund specifically for yourself, you have probably been offered insurance. Either way life insurance and superannuation go hand in glove.
The fact is, insurance in your super can be a bit of a safety net, providing some protection in certain circumstances. But what is the insurance offered and how much can the premiums impact your retirement savings?
In conjunction with the release of Canstar’s 2018 Superannuation Star Ratings, our research team crunched the numbers to project a few possible scenarios to demonstrate what difference opting out of default life insurance could make to your retirement balance.
Many superannuation funds offer life insurances, such as death cover, total and permanent disability (TPD) cover and income protection, with a combination of these often set as default inclusion.